ISLAMABAD – A new Policy for domestic and agriculture consumers using up to 300 units is on cards as federal government announced to pass on benefit of negative Fuel Charges Adjustment (FCA).
This decision is in line with policy guidelines established by Economic Coordination Committee (ECC) in May 2015, which stated that negative FCA adjustments would not apply to domestic consumers receiving subsidized electricity tariffs.
Under decision made in June 2015, National Electric Power Regulatory Authority (NEPRA) already excluded non-time-of-use (TOU) domestic consumers who use up to 300 units from negative FCA charges. Similarly, agriculture consumers have been exempted from negative FCA since November 2010.
Power Division cited recent policy changes, including the Ministry of Energy’s guidelines issued in June 2021 to re-target power subsidies, as the reason for reconsidering this longstanding exemption.
The division has requested NEPRA to review its decision, emphasizing that the continued exclusion of negative FCA charges for non-protected domestic and agriculture consumers may no longer align with the government’s broader tariff rationalization goals.
This development is expected to have significant implications for both agriculture consumers and domestic users, as it could lead to changes in electricity pricing in the coming months.
